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BEAVERTON, Ore., Dec. 12 /PRNewswire/ -- Epitope, Inc. (Nasdaq: EPTO) today reported its fourth quarter and fiscal 1997 operating results. Revenue for the year amounted to $9.4 million, up from $5.6 million in the prior year. Revenue for the quarter ended September 30, 1997 totaled $1.5 million, compared with $2.1 million for the fourth quarter in fiscal 1996. For the year ended September 30, 1997, the Company reported a net loss, including discontinued operations, of $22.4 million, or $1.67 a share, compared with a net loss of $1.4 million, or $0.11 a share, in fiscal 1996. The Company reported a net loss of $5.6 million, or $0.42 per share, for the fourth quarter ended September 30, 1997, compared with a net loss of $1.4 million, or $0.11 a share, for prior year period. The loss from continuing operations was $4.1 million for fiscal 1997 compared to a profit of $1.1 million for fiscal 1996. The major factors affecting this change were: (1) a gross profit increase from product sales of $2.4 million in fiscal 1997, (2) a one-time $5.0 million fee paid by SmithKline Beecham in 1996, (3) a $0.5 million reduction in interest earned because of lower levels of cash, (4) a $1.0 million increase in R&D expense primarily from over-the-counter market clinical studies, offset by $0.5 million in added funding from SmithKline Beecham, and (5) a $1.6 million increase in selling, general and administrative expense primarily attributable to the expansion of the Company's direct sales effort. Epitope Medical Products Epitope's medical products sales increased 67% in 1997, to $9.4 million. Sales of Epitope's oral specimen collection device were $6.3 million, representing an 89% increase over levels achieved in 1996. The device is marketed by Epitope under the name EpiScreen(R) in the life insurance industry and the name OraSure(R) for public health and professional use. The continued increase in sales volume resulted from the growing number of life insurance companies adopting the device for testing insurance applicants and extending its use to broader age and policy ranges, as well as increasing sales to the public health market. Fourth quarter sales were affected by one distributor's decision to adjust inventory levels. Gross margins on EpiScreen/OraSure product sales improved from 54.1% of sales in 1996 to 65.0% of sales in 1997 as a consequence of increased sales volume of EpiScreen/OraSure devices. As of September 30, 1997, Epitope had firm orders totaling $0.9 million and $450,000, respectively, for delivery of EpiScreen/OraSure and HIV confirmatory tests in the first quarter of fiscal 1998. Discontinued Operations As announced previously, Epitope has decided to spinoff its Agritope agricultural biotechnology subsidiary through a dividend distribution to its shareholders. As a result of the spin-off, Agritope will cease to be a wholly owned subsidiary of Epitope and will operate as an independent public company. Because the distribution is expected to occur shortly, Agritope is accounted for as a discontinued operation in 1997, with comparative presentation for 1996 financial results. Discontinued Operations results for 1997 include $8.7 million in Agritope losses for this period, as well as estimated continuing Agritope losses and spin-off related expenses of $1.2 million for the months in fiscal 1998 prior to the spin-off. Also included in Discontinued Operations is a loss of $8.4 million attributable to the former Epitope subsidiary Andrew & Williamson Sales Co., which was returned to its former owners in May 1997 when Epitope rescinded its acquisition of that company. Epitope, Inc. A tabulation of operating highlights and selected balance sheet data follows (in thousands, except per share data): Three months ended Year ended OPERATING HIGHLIGHTS 9/30/97 9/30/96 9/30/97 9/30/96 Revenues $ 1,500 $ 2,055 $ 9,360 $ 5,594 Net loss (Continuing Operations) (1,878) (663) (4,081) 1,101 Net loss (5,576) (1,431) (22,440) (1,400) Net loss per share (Continuing Operations) (0.14) (0.05) (0.30) 0.08 Net loss per share (0.42) (0.11) (1.67) (0.11) SELECTED BALANCE SHEET DATA 9/30/97 9/30/96 Cash and marketable securities $ 9,076 $24,041 Working capital 9,532 24,793 Total assets 17,019 29,784 Shareholders' equity 15,014 27,967 Epitope, Inc. is an Oregon corporation which develops and markets medical diagnostic products. The current focus of the products is in the use of oral fluid in the detection of HIV infection, with emphasis in the life insurance and public health markets. Source: EPITOPE Inc. Content of this page is copyright and reprinted here for educational and historical information. |
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